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HONG KONG, Aug 9: Asian stocks closed mostly higher on Thursday on sharp gains on Wall Street but markets trading later in the day were punished severely after a European exposure to US sub-prime problems were revealed.
Those markets reversed course after an announcement in Europe that French bank BNP Paribas had suspended three funds and a US-German joint venture had also been caught up in the sub-prime problems.
As a result and Bangkok tumbled 2.38 per cent, Hong Kong closed 0.43 per cent lower, Jakarta was off 0.90 per cent, Mumbai shed 1.14 per cent and gains in Kuala Lumpur were whittled back to 0.50 per cent.
Shanghai was the standout on the day with 1.95 per cent advance further into record territory, Sydney gained 1.1 per cent, Wellington was 1.0 per cent higher, Taipei was up 0.91 per cent and Tokyo rose 0.83 per cent.
TOKYO: Japanese share prices closed up 0.83 per cent after strong gains on Wall Street overnight helped to calm investor fears about problems in the US housing market.
But dealers said profit-taking capped gains after the benchmark Nikkei index rebounded back above the key 17,000 points level a day earlier.
The Nikkei-225 index rose 141.32 points to 17,170.60. Turnover jumped to 3.8 billion shares from 2.54 billion Wednesday.
HONG KONG: Share prices closed lower as caution re-emerged in late trade after two international financial firms were linked to problems in the US sub-prime mortgage market.
Stocks had advanced significantly, but trading changed course when the news about BNP hit the market, wiping out the day's gains.
SYDNEY: Australian share prices closed 1.1 per cent higher as investor sentiment continued to recover from last week's selloff, mirroring the rebound in confidence on Wall Street.
Dealers said even a muted response to Telstra's annual results failed to dampen the market, with 2.2 billion shares worth 7.1 billion dollars (6.1 billion US) traded as 811 stocks rose, 459 fell and 320 remained unchanged.
The S&P/ASX 200 added 64.8 points at 6,165.6.
KUALA LUMPUR: Malaysian share prices closed up 0.50 per cent but concerns continued to linger over the US economy with late profit taking overshadowing gains made in the earlier session.
The composite index closed up 6.22 points at 1,313.39. Trading volume was 1.226 billion shares valued at 1.779 billion ringgit.
“This remains a “yo-yo” market. Sentiment is still fragile after the recent sharp correction in regional markets. Any negative news flow is capable of triggering another round of sell-offs,” said SBB Securities senior investment analyst Ng Jun Sheng.
JAKARTA: Indonesian share prices closed 0.90 per cent lower after a see-saw session, with the main index giving up all early gains inspired by Wall Street's rebound as investors moved quickly to sell into strength.
The composite index closed down 21.23 points at 2,241.40. Volume was 3.68 billion shares worth 2.98 trillion rupiah (320.53 million dollars).
NISP Sekuritas analyst Arif Budiman said the turnaround from a strong opening to a weaker close was purely due to profit-taking.
WELLINGTON: New Zealand share prices closed 1.0 per cent higher as bargain hunters snapped up stocks after recent losses.
The NZSX-50 index rose 43.58 points at 4,160.43 on turnover of 150.4 million dollars (115.3 million US). Rises outnumbered falls 54 to 39.
Bargain hunters have come back into the market and that seems to be in reaction to the volatility reducing (slightly) bit overseas -- the Dow Jones has had two good nights in a row, said Hamilton Hindin Greene partner Grant Williamson.
Fletcher Building rose 29 cents to 12.47 dollars, having lost 42 cents Wednesday after reporting a record profit but signalling flattish trading ahead.
I think the analysts have done their work on that result and have pretty much (found) ... that it's actually a good result in challenging conditions,Williamson said.
MUMBAI: Indian share prices fell 1.36 per cent in volatile trade as investors locked-in gains.
Dealers said several Asian and European markets weakened during the day, which caused investors to sell locally as well.
The Mumbai stock exchange Sensex index fell 207.83 points to 15,100.15.
The markets are distinctly nervous, said a dealer with brokerage Jamnadas Morarjee. We advise investors to stay on the sidelines until there is clarity on global equity trends.—AFP
